Start-ups with Rs 10 crore funding need not pay angel tax

After changes in the tax regime are finalized by the Department of Industrial Policy and Promotion (DIPP), startups incorporated before 2016 and with an angel funding of up to Rs 10 crore would not have to face angel tax. DIPP will soon notify the amendment and will also set up a separate committee for identifying such startups so that they are relieved from paying the tax.   
 
"We have finalized the conditions which will resolve the issue of pre-2016 start-ups," an official from DIPP said. "We will have adequate safeguards that would be taken into account when a startup is examined for recognition,” he said.
 
Close to 300 startups that have received funding from the Angel Investors Network will feel relieved if the amendment is done. It was reported earlier that DIPP was working to provide relief to startups incorporated before 2016. Start-ups incorporated after 2016 and recognized under the Startup India policy are spared this tax.